Apple to Pay $95 Million to Settle Siri Privacy Lawsuit
Apple has agreed to a $95 million cash settlement to resolve a class-action lawsuit alleging that its Siri voice assistant violated user privacy.
The preliminary settlement was filed Tuesday in federal court in Oakland, California.
Following the announcement, Apple’s shares dropped 2.62% on Nasdaq, closing at $243.85 on Thursday.
The lawsuit originated from complaints by mobile device owners that Siri recorded private conversations after being unintentionally activated and disclosed those conversations to third parties, including advertisers.
The class-action period covers incidents between September 17 and December 31, 2024, stemming from Siri’s introduction of the “Hey Siri” feature, which allegedly led to unauthorized recordings.
Apple Products in China
Apple’s stock also faced pressure due to price cuts for iPhones in China, aimed at competing with domestic rivals like Huawei.
The company announced discounts of up to 500 yuan (approximately $68.50) on current iPhone models in China.
Huawei’s Mate 70 smartphone has gained market share thanks to its AI features, which the iPhone currently lacks in China. To address this, Apple is exploring partnerships with local internet service giants such as Tencent and ByteDance to integrate AI functionalities into its offerings in the region.
China remains Apple’s second-largest market, and weakening sales there could pose significant financial challenges.
Since reaching a record high of $260.10 on December 26, Apple’s shares have declined over the past four sessions.
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